It’s all about the Money
Here at Wall Business Services, we like to focus on the numbers. The numbers can show many things about a person or a business. One of the main factors making up the numbers that affects everyone, is payroll.
For most employees, this is what drags you out of bed on a Monday morning and keeps a roof over your head.
For businesses, this can be one of the most expensive cash flow aspects, and the consequences of not meeting obligations can literally rest on the shoulders of business owners.
Employees – Check that you are being taken care of
There are some things that you can do to ensure that the payments made on your behalf – Super and PAYGW – are actually being completed.
- Contact your super fund (if you have more than one, you need to review your options as this can save you a bucket load of cash – a tale for another day).
- Speak with your Super Fund to confirm that the dollars shown on your payslip are actually being paid to your Super account.
- Confirm the payment dates and frequency to ensure that your employer is paying on time
- Check that the correct amount of PAYGW is being held on your behalf. The ATO has resources, including this online calculator for you to check.
- If you have any questions about the amount that should be withheld, speak with your accountant or your payroll officer for clarification.
Employers – Know the consequences
A major red flag to accountants – and the Australian Taxation Office – is where employers are not meeting their obligations to workers. Keeping on top of due dates and correct amounts to be paid can be daunting. As a business owner, you need to be aware of the following:
- Superannuation obligations must be paid at least quarterly, and received by the Super Fund WITHIN 28 days of the end of the quarter. Failure to pay Super within this 28 days timeframe, may lead to:
- Further documentation required, completed forms for EACH employee
- Fines and penalties, including an amount payable for EACH employee
- Superannuation liability may be payable on ALL hours, not just ordinary time earnings
- Directors of Companies being personally liable for Super obligations.
- Pay As You Go Withholding (PAYGW) obligations are changing with Single Touch Payroll Reporting (STPR). Reporting requirements for PAYGW details depends on the number of employees you had working for you in April 2018. With current legislation being debated to include ALL employers to be incorporated in the STPR system. PAYGW obligations are required to be paid monthly, quarterly or within 7 days of a payrun, depending on your business. Failure to meet these reporting and payment obligations may lead to:
- Fines and Penalties on late lodgement and payment
- Directors of Companies being personally liable for PAYGW payments.
Employers – Stay between the Flags
The ATO does not take kindly to employers not meeting their obligations. The flow on effects of not lodging or paying Super and/or PAYGW within set timeframes can affect other aspects of the business, such as:
- The ATO may seek to audit your Superannuation obligations, including over several years.
- The ATO may believe that other obligations are not accurate and audit these aspects of your business – GST and Income Tax.
In a Nutshell…
Employees, make sure that you are being paid the right amount and on time.
Employers, avoid red flags with the ATO and keep up to date with your obligations.
We have payroll solutions as certified partners with Xero, MYOB, Quickbooks and Epayroll.
If you have any doubts as an employer, contact us to arrange a Payroll Health Check – New Year special – if you hire 5 or less employees we can complete a payroll health check for you for $199.00*